| Schedule of Components of Income Tax Expense (Benefit) |
Income tax (benefit) provision reported in the consolidated income statements is comprised of the following:
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December 31, |
|
2020 |
|
2019 |
| Current provision: |
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|
| Federal |
$ |
— |
|
|
$ |
— |
|
| State, net of state tax credits |
342,832 |
|
|
47,133 |
|
| Total current provision |
342,832 |
|
|
47,133 |
|
| Deferred (benefit) provision: |
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|
|
| Federal |
(6,074,433) |
|
|
652 |
|
| State |
(2,023,061) |
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|
921 |
|
| Total deferred (benefit) provision |
(8,097,494) |
|
|
1,573 |
|
| Total income tax (benefit) provision |
$ |
(7,754,662) |
|
|
$ |
48,706 |
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| Schedule of Deferred Tax Assets and Liabilities |
The following are the components of the Company’s deferred tax assets (liabilities) for federal and state income taxes:
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December 31, |
|
2020 |
|
2019 |
| Deferred income tax assets: |
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|
| Accrued expenses |
$ |
697,411 |
|
|
$ |
515,802 |
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| Deferred revenue |
5,109,283 |
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|
4,435,474 |
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| Lease liability |
3,696,955 |
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|
3,782,796 |
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| Goodwill - component 2 |
51,536 |
|
|
55,302 |
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| Restricted stock compensation |
— |
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|
3,888 |
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| Nonqualified stock options |
249,127 |
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|
198,884 |
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| Net operating loss carryforwards |
2,083,643 |
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|
3,585,723 |
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| Tax credits |
35,850 |
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|
33,767 |
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| Asset basis difference related to property and equipment |
— |
|
|
213,971 |
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| Intangibles |
890,440 |
|
|
595,814 |
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| Total deferred income tax assets |
12,814,245 |
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|
13,421,421 |
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| Deferred income tax liabilities: |
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|
| Lease right-of-use asset |
(3,153,951) |
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|
(3,267,892) |
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| Deferred franchise costs |
(291,915) |
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|
(406,522) |
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| Goodwill - component 1 |
(321,967) |
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|
(245,446) |
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| Asset basis difference related to property and equipment |
(256,487) |
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|
— |
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| Restricted stock compensation |
(68,703) |
|
|
— |
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| Total deferred income tax liabilities |
(4,093,023) |
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|
(3,919,860) |
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| Valuation allowance |
(713,589) |
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|
(9,591,424) |
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| Net deferred tax asset (liability) |
$ |
8,007,633 |
|
|
$ |
(89,863) |
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| Schedule of Effective Income Tax Rate Reconciliation |
The following is a reconciliation of the statutory federal income tax rate applied to pre-tax accounting net income, compared to the income tax (benefit) provision in the consolidated income statements:
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For the Years Ended December 31, |
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2020 |
|
2019 |
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Amount |
|
Percent |
|
Amount |
|
Percent |
| Expected federal tax expense |
$ |
1,136,657 |
|
|
21.0 |
% |
|
$ |
731,503 |
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|
21.0 |
% |
| State tax provision, net of federal benefit |
277,401 |
|
|
5.1 |
% |
|
315,805 |
|
|
9.1 |
% |
| Change in valuation allowance |
(8,877,736) |
|
|
(164.0) |
% |
|
(810,190) |
|
|
(23.3) |
% |
| Other permanent differences |
123,913 |
|
|
2.3 |
% |
|
41,711 |
|
|
1.2 |
% |
| Stock compensation |
(398,007) |
|
|
(7.4) |
% |
|
(232,686) |
|
|
(6.7) |
% |
| Bargain purchase gain |
— |
|
|
— |
% |
|
(5,205) |
|
|
(0.1) |
% |
| Return to provision adjustments |
(16,890) |
|
|
(0.3) |
% |
|
7,768 |
|
|
0.2 |
% |
| (Benefit) provision |
$ |
(7,754,662) |
|
|
(143.3) |
% |
|
$ |
48,706 |
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|
1.4 |
% |
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